Markets Rally as Trump Pauses “Project Freedom” and a US‑Iran Memo Nears Completion

<p>President Trump has paused his so‑called “Project Freedom” — an initiative to escort ships through the Strait of Hormuz — as Washington presses for a negotiated settlement with Tehran, people familiar with the matter said. Diplomatic activity has accelerated: Iran’s foreign minister is in Beijing for talks, and Axios reports the two sides are closing […]</p>

President Trump has paused his so‑called “Project Freedom” — an initiative to escort ships through the Strait of Hormuz — as Washington presses for a negotiated settlement with Tehran, people familiar with the matter said.

Diplomatic activity has accelerated: Iran’s foreign minister is in Beijing for talks, and Axios reports the two sides are closing in on a one‑page memo that would effectively restore key elements of the 2015 nuclear deal. Under the reported terms, Iran would agree to pause uranium enrichment and forgo pursuit of a nuclear weapon, while the US would ease sanctions and release some frozen Iranian assets.

The prospect of a de‑escalation sent risk assets sharply higher and commodities lower. European equities rallied nearly 3% as global risk appetite rebounded; mainland China and Hong Kong closed about 1.4% higher. Oil plunged about 9%, with Brent crude trading near $100 a barrel as geopolitical risk premia evaporated. Safe‑haven flows also shifted — the yen hit a 10‑week high amid intervention talk, while gold and silver posted strong gains.

In corporate and tech deals, China’s main chip development fund is reportedly in talks to lead a fundraising round for DeepSeek at a $45 billion valuation, reflecting Beijing’s continued push to scale domestic semiconductor champions.

Korea’s stock market also stood out: Samsung surpassed a $1 trillion market capitalization, joining TSMC in an elite group and helping drive a roughly 75% rally in the Korean benchmark so far in 2026.

Investors will be watching whether the one‑page memo can be finalized and translated into durable détente — developments that would reverberate through energy markets, currency flows and regional geopolitical calculations.


Clear insights on Brazilian equities

Join portfolio managers and investors who get our curated analysis on Latin America’s largest economy.

Advertisement